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INDIA'S largest mobile company Bharti Airtel's over $2-billion network outsourcing contract will be up for grabs soon. With its current multi-billion dollar network outsourcing deals with equipment majors Ericsson and Nokia Siemens Networks (NSN) coming up for renewal next year, the telco will start inviting bids from global equipment vendors in the next couple of months. According to people familiar with developments at Bharti Airtel, Ericsson and NSN will not be guaranteed an automatic extension, but will have to compete with other potential bidders.
Industry executives point out that incumbent Ericsson and Nokia Siemens remain favourites to win the deals, but Bharti's decision to invite bids also presents an opportunity for other equipment vendors, such as Huawei, ZTE and Alcatel-Lucent, to bid for one of the largest networks management contracts globally. Significantly, Chinese equipment vendors will be participating for the first time.
Bharti has some experience of working with other equipment vendors. The telco had earlier awarded the contract to build, maintain and manage its networks in Sri Lanka to Chinese equipment major Huawei after a competitive bidding process.
Franco-American telecom gearmaker Alcatel-Lucent has also emerged as a strong player in the Indian market, having bagged a series of contracts recently. Last year, it bagged a managed services deal with Reliance Communications, covering the latter's GSM and CDMA networks. Last week, Alcatel-Lucent formed a $500-million JV with Bharti to manage its landline and broadband networks. Bharti has signed four outsourcing deals with Ericsson
BHARTI Airtel has been one of the pioneers in outsourcing its infrastructure and IT systems. In fact, its multi-billion dollar deals with Ericsson and NSN as well as its IT outsourcing deal with software major IBM were perhaps the first of such deals signed anywhere in the world.
Currently, India is divided into 22 telecom circles. Sweden's Ericsson manages Bharti's networks in 15 circles while the rest is handled by Nokia Siemens. So far, Bharti has signed four major network outsourcing deals with Ericsson in the past five years since signing a $400-million deal in February 2004. The latest contract in mid-2007 was valued at $2 billion.
Bharti has also signed four network outsourcing deals with NSN beginning May 2004, when it signed a three-year, $275-million deal to build and manage networks across five circles. The last in the series of contracts was a $900-million deal signed in 2007 that went beyond mere network expansion. As part of the new deal, NSN was also given the task of enhancing the Indian telco's national and international long-distance networks.
Industry executives point out that incumbent Ericsson and Nokia Siemens remain favourites to win the deals, but Bharti's decision to invite bids also presents an opportunity for other equipment vendors, such as Huawei, ZTE and Alcatel-Lucent, to bid for one of the largest networks management contracts globally. Significantly, Chinese equipment vendors will be participating for the first time.
Bharti has some experience of working with other equipment vendors. The telco had earlier awarded the contract to build, maintain and manage its networks in Sri Lanka to Chinese equipment major Huawei after a competitive bidding process.
Franco-American telecom gearmaker Alcatel-Lucent has also emerged as a strong player in the Indian market, having bagged a series of contracts recently. Last year, it bagged a managed services deal with Reliance Communications, covering the latter's GSM and CDMA networks. Last week, Alcatel-Lucent formed a $500-million JV with Bharti to manage its landline and broadband networks. Bharti has signed four outsourcing deals with Ericsson
BHARTI Airtel has been one of the pioneers in outsourcing its infrastructure and IT systems. In fact, its multi-billion dollar deals with Ericsson and NSN as well as its IT outsourcing deal with software major IBM were perhaps the first of such deals signed anywhere in the world.
Currently, India is divided into 22 telecom circles. Sweden's Ericsson manages Bharti's networks in 15 circles while the rest is handled by Nokia Siemens. So far, Bharti has signed four major network outsourcing deals with Ericsson in the past five years since signing a $400-million deal in February 2004. The latest contract in mid-2007 was valued at $2 billion.
Bharti has also signed four network outsourcing deals with NSN beginning May 2004, when it signed a three-year, $275-million deal to build and manage networks across five circles. The last in the series of contracts was a $900-million deal signed in 2007 that went beyond mere network expansion. As part of the new deal, NSN was also given the task of enhancing the Indian telco's national and international long-distance networks.
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